Is LIDO going to take over everything and everyone?

An interesting question is long term dynamics of STETH vs ETH

There is a simple argument that in the long term, all ETH will end up getting transformed into STETH

The argument goes like this: normally when the market is not too scared STETH is pegged to ETH 1:1, but if you hold STETH you get staking return and if you hold ETH you do not.

So pretty much anyone that holds ETH has an incentive to turn it into STETH.

Then the long term fix point of the evolution is that all ETH is turned into STETH.

The funny thing is that at this point everything is trivialized into inflation, since everyone will get the same return and the only happy party is IRS.

Another interesting result of this is 100% centralization of the network, since LIDO will be the only party actually controlling staking.

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I have the same concern

We have some decent and competitive options. This is one of the topics that I am concerned about. I am trying to learn more about rocket pool. The thing is that you can do so much with stETH compared to rETH that it becomes really tempting